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Sale Leaseback Agreement for Malaysia

Sale Leaseback Agreement Template for Malaysia

A comprehensive legal document governed by Malaysian law that combines a property sale agreement with a simultaneous leaseback arrangement. This agreement enables the original property owner to sell their property while continuing to occupy and use it as a tenant under specified lease terms. The document addresses both the sale transaction elements (including property transfer, purchase price, and completion requirements) and the subsequent lease arrangements (including rental terms, maintenance obligations, and operational conditions), all within the framework of Malaysian property and contract law.

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What is a Sale Leaseback Agreement?

A Sale Leaseback Agreement is a strategic financial instrument used when a property owner wishes to liquidate their real estate assets while maintaining operational control through a long-term lease. This document type is particularly relevant in the Malaysian market where businesses seek to optimize their balance sheets while retaining use of crucial operational properties. The agreement must comply with Malaysian property law, including the National Land Code 1965, Contracts Act 1950, and relevant tax regulations. It typically includes detailed provisions for both the sale transaction and the leaseback arrangement, covering aspects such as purchase price, lease terms, maintenance responsibilities, and potential future purchase options. This structure is commonly used by companies seeking to free up capital for business operations or expansion while maintaining control over their operational facilities.

What sections should be included in a Sale Leaseback Agreement?

1. Parties: Identification of the seller-lessee and buyer-lessor, including full legal names and registration details

2. Background: Context of the transaction, including property ownership status and intention for sale and leaseback

3. Definitions: Definitions of key terms used throughout the agreement

4. Sale Terms: Details of the sale transaction including purchase price, payment terms, and completion conditions

5. Property Transfer: Provisions regarding the transfer of title and registration requirements

6. Lease Terms: Core leaseback provisions including lease duration, rental amounts, and payment schedule

7. Use of Property: Permitted use of the property and any restrictions

8. Maintenance and Repairs: Responsibilities for property maintenance, repairs, and improvements

9. Insurance: Insurance requirements for both parties

10. Default and Remedies: Consequences of default by either party and available remedies

11. Termination: Conditions and procedures for termination of the agreement

12. Representations and Warranties: Standard representations and warranties from both parties

13. Governing Law: Specification of Malaysian law as governing law and jurisdiction

14. Notices: Process for serving notices between parties

15. General Provisions: Standard boilerplate clauses including assignment, severability, and entire agreement

What sections are optional to include in a Sale Leaseback Agreement?

1. Tenant Improvements: Details of any permitted or required improvements by the tenant, used when specific modifications are anticipated

2. Environmental Matters: Environmental warranties and indemnities, included for industrial or potentially contaminated properties

3. Property Management: Specific property management arrangements, used for commercial or multi-tenant properties

4. Purchase Option: Terms for tenant's option to repurchase the property, if applicable

5. Assignment and Subletting: Detailed provisions for assignment or subletting rights, used for commercial properties

6. Service Charges: Details of service charge calculations and payments, used for commercial properties

7. GST Provisions: Specific GST treatment and requirements, used for commercial properties

8. Building Rules: Specific building rules and regulations, used for properties in managed buildings

What schedules should be included in a Sale Leaseback Agreement?

1. Property Description: Detailed legal description of the property including title details

2. Purchase Price Details: Breakdown of purchase price, payment schedule, and any adjustments

3. Rent Schedule: Detailed rent payment schedule including any escalation provisions

4. Condition Report: Report on the condition of the property at the time of sale

5. Permitted Use: Detailed description of permitted uses of the property

6. Maintenance Schedule: Detailed breakdown of maintenance responsibilities

7. Insurance Requirements: Specific insurance requirements and minimum coverage amounts

8. Form of Transfer: Template transfer documents required for property registration

9. Service Level Standards: Standards for property maintenance and services if applicable

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Malaysia

Publisher

Ƶ

Document Type

Sale Agreement

Cost

Free to use
Relevant legal definitions






























Clauses






























Relevant Industries

Real Estate

Commercial Property

Industrial Manufacturing

Retail

Hospitality

Healthcare

Education

Logistics and Warehousing

Banking and Financial Services

Agriculture

Relevant Teams

Legal

Finance

Real Estate

Operations

Facilities Management

Risk Management

Treasury

Corporate Development

Property Management

Asset Management

Relevant Roles

Chief Financial Officer

Real Estate Director

Property Manager

Legal Counsel

Corporate Treasurer

Facilities Manager

Investment Manager

Asset Manager

Commercial Director

Operations Director

Risk Manager

Finance Manager

Company Secretary

Industries








Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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